Can a second mortgage be discharged in bankruptcy?

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Can a second mortgage be discharged in bankruptcy?

I was told that discharging a 2nd on a home is possible without losing the home, please tell me if I would be able to add this to my bankruptcy and what forms would I need to have it placed on my banktuptcy. Home not in foreclosure, and 1st mortgage is current.

Asked on September 11, 2010 under Bankruptcy Law, California

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If the second mortgage is a HELOC, it may be possible since the second mortgage is indeed in a second position to the home.  Be careful however, because you need to check if you have homestead rights on your home and if a second mortgage is truly considered a separate debt.  You need to act quickly before a lien is placed on your home for those monies.  Did you use your home to secure the second mortgage or is it more of a personal loan.  Check with bankruptcy counsel. 


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